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Free CMT Association CMT-Level-II Practice Exam with Questions & Answers | Set: 4

Questions 31

Which crossover in MACD-Histogram is the strongest signal generated in the following chart of Alphabet Inc.

C ABD

Options:
A.

A

B.

B

C.

C

D.

D

CMT Association CMT-Level-II Premium Access
Questions 32

Which of the following is a continuation pattern:

Options:
A.

Head and shoulders

B.

Wedge

C.

Broadening top

D.

V-bottom

Questions 33

Abandoned baby patterns:

Options:
A.

appear upon completion of star patterns

B.

appear nowhere in star patterns, only in box ranges

C.

ideally has a doji as second real bottom

D.

can only be formed over long periods of time

Questions 34

Which of the following is NOT true in chart interpretation:

Options:
A.

A price chart is a representation of human behavior

B.

The goal is to find consistent, reliable and logical patterns

C.

Chart patterns can be caused by commonly used trading techniques

D.

The behavioral aspects of prices are irrational

Questions 35

Which of the following describes the McClellan Oscillator?

Options:
A.

On days when prices close higher, it is assumed that all volume is represented by sellers

B.

It is a breadth momentum oscillator

C.

It is the sum of two exponential moving averages

D.

It is used for longer-range trading compared to the McClellan Summation Index which is more useful for short term trading

Questions 36

Over a period of 4 weeks, a swing trader notices that for a particular security the ADX reading has declined from a high of 45 to a current low of 15. What tool may best help the trader isolate a trading opportunity over the next few days?

Options:
A.

A Simple Moving Average

B.

An Oscillator

C.

An Exponential Moving Average

D.

A Linear Regression Line

Questions 37

In some point-and-figure charts, what is the actual representation of the new price recorded on the chart?

Options:
A.

The first letter or the number of the month is plotted

B.

The number of the month is plotted

C.

The first letter of the month is plotted

D.

The name or the number of the month is plotted

Questions 38

When using a two moving averages (MA. system, which of the following rules can be utilized to generate a buy signal?

Options:
A.

Buy when the faster moving average crosses the slower moving average from above.

B.

Buy when the faster moving average hooks the slower moving average from above.

C.

Buy when the faster moving average hooks the slower moving average from below.

D.

Buy when the current price crosses above both moving averages.

Questions 39

The Efficient Market Hypothesis assumes that:

I. Most investors will act rationally

II. Most investors will act irrationally

III. Prices typically reflect all available information

IV. Prices typically do not reflect all available information

Options:
A.

I & III

B.

I & IV

C.

II & III

D.

II & IV

Questions 40

________ is calculated by finding the probability of loss of the current market positions based on past market movements.

Options:
A.

Value at Risk

B.

Potential Risk

C.

Treynor ratio

D.

Hindenburg Omen

Exam Code: CMT-Level-II
Certification Provider: CMT Association
Exam Name: CMT Level II Exam
Last Update: Jul 19, 2025
Questions: 262

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